COMPANY NEWS; NEW JERSEY SUES BLOCKBUSTER OVER LATE FEES

Published: February 19, 2005

The State of New Jersey filed a consumer-protection lawsuit yesterday against the movie-rental chain Blockbuster, contending that it had failed to disclose terms of a new policy on late fees. Blockbuster has not told customers that late rentals are converted to sales on the eighth day after they are due, the lawsuit stated. In addition, stores not participating in the new policy that continue to charge late fees have not made that clear to customers, the state said. The lawsuit, filed in Trenton, sought restitution for customers charged late fees at those stores and for customers whose overdue rentals were converted to sales. Blockbuster, based in Dallas, said it had informed customers adequately.